Question

Suppose that U.S. firms outsource plane manufacturing jobs to China, it is expected that

A) the wage rate for workers manufacturing planes will decrease in the U.S. but increase in China.

B) the wage rate for workers manufacturing planes will increase in the U.S. but decrease in China.

C) the wage rate for workers manufacturing planes will increase in both the U.S. and China.

D) the wage rate for workers manufacturing planes will decrease in both the U.S. and China.

Answer

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